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2018 (5) TMI 1419 - AT - Service TaxCENVAT credit - input services used for providing taxable services as well as trading activity - Rule 6 (2) of Cenvat Credit Rules, 2004 - Held that: - Tribunal in case of Commissioner of Service Tax, Delhi vs. Machine Tools India Pvt. Ltd. [2017 (8) TMI 833 - CESTAT NEW DELHI] has held that on the “trading activity” which was not even considered even as exempted service prior to 01/04/2011, no Cenvat credit is available on any “input service” attributable to the trading activity at material time - the appellant is liable to reverse or pay back the input service credit attributable to the trading activity. Penalty u/s 78 - Held that: - appellant were aware that Cenvat credit of input services can only be availed on the taxable output service and as the “Trading Activity” was not even a taxable activity they could have resisted from availing Cenvat credit of common service inputs - benefit of section 80 not allowed - penalty upheld. Appeal dismissed - decided against appellant.
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